(Kitco News) - Gold prices are solidly down in early U.S. trading Friday, while silver prices are modestly lower. This week’s improving trader/investor risk appetite in the general marketplace is bearish for the safe-haven metals. June gold was last down $41.60 at $3,307.00. May silver prices were last down $0.228 at $33.275.
Asian and European stock markets were mostly higher in overnight trading. U.S. stock indexes are pointed to slightly lower openings today in New York. There appears to be at least a slight thawing in the current China-U.S. cold war. Both sides have indicated they want to negotiate on trade and some reports say lower-level meetings between the U.S. and China are occurring. This has improved trader and investor risk appetite in the general marketplace.
There are also other geopolitical matters presently in play. Reports say high-level Trump administration official Steve Witkoff is soon to meet with Russian President Putin. There are also rumblings that the U.S. and Israel will take out Iran’s nuclear capability if Iran does not agree to a deal on the matter with the U.S.
While gold prices have seen solid selling pressure this week, there may be enough geopolitical elements in flux that a price floor may be close to being in place for gold.
The key outside markets today and see the U.S. dollar index firmer. Nymex crude oil futures prices are weaker and trading around $62.00 a barrel. The yield on the benchmark 10-year U.S. Treasury note is presently at 4.288%.
U.S. economic data due for release Friday includes the University of Michigan consumer sentiment survey.
Technically, June gold futures bulls have the solid overall near-term technical advantage. Bulls’ next upside price objective is to produce a close above solid resistance at the contract high of $3,509.90. Bears' next near-term downside price objective is pushing futures prices below solid technical support at $3,200.00. First resistance is seen at $3,350.00 and then at the overnight high of $3,384.10. First support is seen at the overnight low of $3,296.00 and then at this week’s low of $3,270.80. Wyckoff's Market Rating: 7.0.
May silver futures bulls have the firm overall near-term technical advantage. Prices are in an uptrend on the daily bar chart. Silver bulls' next upside price objective is closing prices above solid technical resistance at $35.00. The next downside price objective for the bears is closing prices below solid support at $32.00. First resistance is seen at this week’s high of $33.69 and then at $34.00. Next support is seen at $33.00 and then at $32.50. Wyckoff's Market Rating: 7.0.
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